The Bitcoin Hash Ribbons indicator follows two moving averages of hashrate, which is the estimated combined processing power that miners dedicate to the network, the 30-day and 60-day moving averages.

This indicator shows periods when some Bitcoin miners are in losses and start shutting down mining machines. These usually occur when the BTC price is low and can present a good opportunity for investors to buy.

This indicator is not good at predicting Bitcoin value lows. Rather, it shows periods when Bitcoin mining rigs shut down due to difficult market conditions, causing hash rates to drop.

The mining difficulty is adjusted every 2016 blocks, approximately every 2 weeks.

The Bitcoin Hash Ribbons indicator uses 30-day and 60-day simple daily moving averages to identify when the hash rate is in a strong downtrend or uptrend.